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Oh, I certainly agree that it would not be prudent to risk 33% of capital
on any one trade. My response to Jean Jacques was regarding his statement,
"if you risk 33 % of your capital on each trade, if you have three losers
in a row you are dead...."
Al Taglavore
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> From: Mike Campbell <ug@xxxxxxxxxxxx>
> To: metastock@xxxxxxxxxxxxx
> Subject: Re: Risk of ruin, amount per trade formula?
> Date: Tuesday, July 11, 2000 4:09 PM
>
> Al Taglavore writes:
> > "...
> >
> > Need to re-think that one, Jean Jacques. In each trade
> > you are risking 1/3 of the remaining capital, not 1/3 of
> > the original capital amount.
>
> Still, doing this with 3 losers in a row leaves you with just over 30%
> left, no? That seems steep to me.
>
> I'm less risk tolerant, however; many others mileage may vary.
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